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Liberty Star Uranium & Metals Corp. (the
�Company�) (OTCBB: LBSR) is pleased to announce the Company has signed
agreements for a non-brokered equity line of up to US$10,000,000 with Fairhills Capital Offshore Ltd (�Fairhills
Capital,� the �Investor�). The equity line allows but does not
require the Company to issue and sell up to the number of Common Stock shares
having an aggregate purchase price of US$10,000,000 to Fairhills
Capital.
Liberty Star�s CEO, Jim Briscoe notes �The equity
line with Fairhills allows us to obtain the kind of
capital required to move Liberty Star to a new phase of exploration activity.
We are not compelled to take down any specific amount of money; that decision
is entirely at our discretion. The terms of the Agreement are
such that we may continue to pursue financial arrangements and partnerships
with other entities. We intend to see our exploration plans through,
including geochemistry, ZTEM and core drilling, at Hay Mountain and other
Tombstone caldera targets, commencing as soon as we can start draw-downs.�
The terms and conditions of the Equity Line
Agreement (the �Agreement�) include:
� The
Equity Line Open Period is 36 months from after the Effective Date. The
Company must register the stock in advance so that it is free trading when
issued. That will be done through the filing of a form S-1.
� The Company
may deliver a Put Notice from time to time throughout the Open Period to the
Investor that will be less than or equal to 200% of the average daily volume
of the Common Stock for the 10 trading days prior to the applicable Put
Notice Date.
� The
Common Stock Purchase Price will be 27.5% from the 5 day volume
weighted average price (VWAP) - a 27.5% discount - during the 5 trading days
immediately prior to receipt by the Investor of the Company�s Put Notice.
� Fairhills Capital will not be entitled to a stock
ownership position exceeding 4.99% of the
number of Common Stock shares outstanding.
� Fairhills Capital has agreed not sell the Company�s stock
short, either directly or indirectly through its affiliate, principals or
advisors.
� Liberty
Star has reserved 200,000,000 shares for issuance pursuant to the Agreement.
Draw-downs can commence after the Company registers with the SEC the stock it
intends to sell to Fairhills. It is expected the
process could take three to four months or possibly sooner.
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